Cereal Partners Worldwide, Nestlé's global cereal venture with General Mills, is conducting an “industrial review” of a facility in France.
In a statement to Just Food, the venture's local arm, Cereal Partners France, said it was "exploring various options" for the site in Itancourt in the north of the country.
The business said the review would look to see how it could "better address competitiveness challenges" in the breakfast-cereals market in France and Europe more widely.
"Within the scope of this review, all options will be considered, including the search for an industrial partner or a buyer for the Itancourt site," Cereal Partners France said.
According to Cereal Partners France, there has been a "structural decline" in the category since the end of the 2010s. Consumers have "abandoned" what the company calls the "wellness" segment for muesli and granola.
Around 85% of the factory's production is shipped outside France, principally to Europe and countries including the UK, Portugal, Spain, Germany, Italy and Greece. The site makes products under brands including Fitness, Chokella and Crunch.
Without citing the source of the data, Cereal Partners France said "wellness" cereals had accounted for 19% of Europe's breakfast-cereals category in 2016. By 2023, that figure stood at 11%, it added.
"This difficult context has led to a steady decline in volumes at the Itancourt plant since 2009," Cereal Partners France said. "Today, the site produces just 24,000 tons of cereals, compared with its maximum capacity of 70,000 tons – it is currently operating at just 40% of its production capacity."
The review is scheduled to last until the end of March when the business plans to present its conclusions to staff. The facility employs around 250 people.
Cereal Partners France, which has a second factory further south in Rumilly, said it would it wanted to find the “most suitable option for the site and its stakeholders" while "optimising" its production activities in the country.
Nestlé and General Mills set up Cereal Partners Worldwide in 1990. According to the venture's website, the business has 15 factories and around 4,000 staff.
